'It's a Losing Game,' Says Wedbush About GameStop Stock - TipRanks.com

GameStop's stock experienced a significant spike after a tweet from Roaring Kitty, reminiscent of 2021's meme stock frenzy, causing shares to soar and then rapidly decline. The company responded by capitalizing on the high share prices to issue 45 million new shares, diluting stock value but increasing reserves to address ongoing financial struggles. Analyst Michael Pachter from Wedbush sees this as a necessary move but maintains an Underperform rating, indicating skepticism about GameStop's long-term viability amid shifting market trends towards digital sales.